Card Range To Study

29 Cards in this Set

having no regular relation with the business cycle, that is, with detrended GDP

balance of international payments

the summary statement of a country's international trade in commodities, bonds, and international currency

boom

a period in which aggregate economic acticity or real gross national product is high and rising

budget constraint

the equation realting the sources of funds in a period, such as income from the commodity market and initial assets, to the uses of funds in that period, such as consumption and end-of-period assets

chain-weighted real GDP

a method for constructing real GDP in which the realtive-price weights coninually adjusted for the changing composition of production

Consumer price index

a weighted average of prices of consumer goods relative to a base year

demand for money

the amnt of money that someone desires to hold, expressed as a function of the volume of spending, the interest rate, transaction costs, and other variables

depreciation

the wearing out of capital goods over time; often expressed as a fraction of the stock of capital

disposable personal income

personal income less taxes

general price level

the dollar price per unit of an agregate of commodites

govt consumption expenditure and gross investment

expendistures by govt on consumption goods and capital goods. the consumption part includes an estimate of the imputed rental income on the stock of public capital

GDP

the market value of an economys domestically produced goods and services over a specific period of time

GNP

the total market value of the goods and services produced by the residents of a country over a specified period of time; GNP equals gross domestic product plus the net factor income from abroad

gross private domestic investment

total private expenditure on investment goods, including bussiness spending on plant and equipment, the net change in business inventories, and residential construction. this total contains no adjustment for the depreciation of the existing capital goods

implicit GDP price deflator

the price index that relates the gross domestic product, measured in nomial terms, to real GDP

inflation rate

the percentage change in a price index btwn two periods of time

interest rate

the ratio of the interest payment to the amnt borrowed; the return to lendingor the cost of borrowing

keynesian model

the thoery developed that sought to explain aggregate business fluctautions. the failure of prices to adjust to clear markets is a central element of the model

money

the usual means of payment or medium of exchange in an economy. money also serves as a store of value. money may take the form of paper currency, commodities, or deposits at financial institutions.

national income

the income earned from aggregate production; gross national product adjusted for depreciation and sales and excise taxes

national income accounts

the summary statement of gross national product and its components during a year